Robert GillCameco CorporationCCO.TOSELLApr 25, 2024

Has long owned this. He goes overweight on it, then reduces it, then buys when it falls to a support level. The last support of $125ish was tested successfully recently. He's happy to trade this. $175 is major resistance.

We're going to need more energy in future, and he likes the idea of clean energy. Stock price is below 200-day MA, though starting to move higher. High beta (~1.7x), but a strong name almost in a class by itself. Look for it to get above the 200-day. He's adding for new clients.

ChatGPT unleashed a need for reliable power to electricity-hungry data centres. Recent results were mixed, but noteworthy was Westinghouse filing confidential IPO application. That should be huge, and CCO will benefit as 50% owner. Uranium supply/demand should get much tighter; demand will grow, and governments are investing in nuclear.

PE is high, but it's more of a net asset value story (very discounted compared to what it's really worth).

Beat in last quarter. Lots of growth opportunities. One of the premier companies for uranium. A must-own stock. High octane, trades ~6x PE for 2027 and growing ~30%. He'd like to buy it lower -- he might sell some puts.

The market gets excited about a theme, and then reality hits with how long does it actually take to play out in earnings numbers? Broke down technically. He's watching it all the time, because there's a future there. Once you hold it, be prepared to add when it's down and trim when it does well.

He sold, as its relative strength decreased. Still weakening. Next support appears to be ~$120.

He reduced his uranium holdings, but likes CCO. It's volatile. Is holding on, though sold another uranium stock His stop is $130.

Renewed interest in the sector, as energy prices have gone up. Fewer suppliers, and it shows in the stock chart. So valuations have gotten robust. If you've been lucky enough to participate in the runup, look to trim slightly and allocate to something more undervalued.

Has owned it for a while, since the early 2025 breakout. Is consolidating now. There's demand for uranium from nuclear power. He doesn't mind the current dip, as long as it doesn't break its last low.

It goes back to the fact that there's been some profit-taking over the past month or so. Still up 50% over last 12 months. Long-term, clean-energy/renewable theme makes a lot of sense. Fallen to around the 200-day MA, still pretty attractive from a technical perspective with its higher highs and higher lows.

Commodities is tough, because it's been so hot. CCO is one of the few investable plays in uranium, so it's very expensive, too high for him.

In a longer-term uptrend. Fallen off, but coming into support. His only concern is that materials in general are under pressure, expects more weakness. Next 4-6 weeks will be choppy -- use that weakness to add for the long term. Likes the uranium story.

Shares are up because of a resurgence of demand for nuclear power. CCO is the largest producer of uranium and is a low-cost producer. The prices for uranium are expected to climb further.

Increasingly integrated in nuclear facilities (e.g., stake in Westinghouse). Supply constraints can cause prices to soar, but then new supply comes on in rest of the world. High valuation.

He owns some bonds, but hasn't pulled the trigger on the equity. Disconnect between a 10-year horizon for contracts and the current spot price for uranium. Spot price won't be showing up in the profitability.

If you've made money, well done. Remember that commodities tend to overshoot in either direction. Don't add at these levels.